Cost-Volume-Profit Analysis of Dabur Nepal Private Limited

Abstract

The Cost-Volume-Profit (CVP) analysis is fundamental tool used in the field of management and accounting to understand the interaction between Fixed costs, Variable costs, sales and profit. This study determines how variable, and fixed costs directly affect the profitability. This research aims to determine the margin of safety stock, contribution margin, break-even point and other financial indicators of the DNPL. These factors help the DNPL to make financial decisions.

This study is based on a theoretical framework which explores the key concept of costs including fixed cost (FC) and variable cost (VC), contribution margin (CM), and break- even analysis. Five fiscal years were examined quantitatively. The study applies various statistical tools like correlation and regression which determines the relationship among different types of cost and sales.

The findings of the study show that DNPL's profitability is significantly influenced by its cost structure with variable costs playing a vital role in sales fluctuations. According to the results, profitability of DNPL has been enhanced by practical cost management techniques like reducing production costs and keeping a healthy profit margin.